“Place-shaping:a shared ambition for

the future of local government”Next Steps

N3PD6th June 2007Sir Michael Lyons

Lyons- the headlines• The type of country we want to live in• Communities to choose more for themselves

(satisfaction)• Need to argue the value of difference• Need for a grown-up debate about what we

want and what we are willing to pay for• A single system of Government not a spat• Confused accountability undermines trust• A New Constitutional settlement

Local Government - Role

• Placeshaping - a wider role(Leadership ,convening and

coalition)• Flexibility and the scope to

respond• Scope to “grow the cake” • Helping to manage the pressures

Local Government -Funding

• No “golden key” • A “mosaic” of changes• Flexibility much more important

than the balance of funding• Need incentives for growth and

efficiency• Council tax not broken but urgent

need to address fairness and value

Short-term recommendations to central government

Increase local flexibility / leave more scope for local choice

• less specific grants and ‘soft controls’ (yes: CSR)• supplementary business rate (yes, consult)• power to charge for domestic waste to manage pressures

(consider)Address fairness concerns by reform of CTB• Recognise as a ‘rebate’; automate take-up (consider)• Raise savings limits for pensioners to 50K (consider)Improve incentives in the funding system• Improve incentives in the funding system (LABGI yes)Improve transparency of the funding system• Introduce independent voice to help scrutinise funding

decisions and promises (rules out ‘grants commission; awaiting response)

• End capping (No)

Medium and long-term recommendations to CG

Council Tax •Revalue council tax to improve fairness (not this parliament)•Extra bands to help those in low value properties, paid for by those at the top (not this parliament)

Other Funding•Consider assigning a fixed proportion of income tax to local government, (consider)•Consider power to levy tourist tax if case based on local public support. (No)

Local Income Tax – feasible, could improve fairness, would take time to implement and has significant costs

Relocalise business rates – to provide local flexibility and better incentives

Both – need greater public support and understanding than currently exists Government will continue to keep under review

Recommendations to local government

Local government needs to raise its game to make the most of current opportunities:

• Provide strong local leadership and long term vision• Lead as ‘convenor’ across local public services• Engage with public to inform decisions, manage pressures

and expectations• Be recognised as champions of efficiency• Reduce dependence on central government for guidance

and support• Ensure effective national voice through the Local

Government Association• Political parties need to improve councillor recruitment

and support

Taking Stock• 3 Reports (Dec 05, May 06,March 07) together

provide argument and evidence for change• Key recommendations enshrined in the White

Paper.Just the beginning.• Budget report accepts case for financial

flexibility and agrees further consideration of most proposals.

• Need to make the case to this Government and those who want to be its successor

• Need to win popular support by engagement and by demonstrating impact and value

How can you contribute?

• Perceived value for money remains a key indicator

• Room for a new relationship with business community

• Offering real local choice• Looking beyond the boundaries• Looking beyond the budget

Vision for the future• Strong, confident local government with a

good range of powers to tailor its place-shaping behaviours to improve well-being and prosperity in every community

• Greater public understanding of local spending decisions: who is responsible for them and how they are made; based on greater engagement to inform difficult decisions and manage pressures

• Distinctive communities, proud and confident about their different choices

• As a result, greater public trust and satisfaction with the system of government as a whole

WELCOME BACK

The Politics of Procurement

Why procurement matters?

What is happening? Legacy and solutions

Conflicts of objectives

Assessing performance

Why procurement matters?

• £140bn of public sector purchases per annum (10% of GDP)

• Potential for government savings: aim for £5.5bn pa of Gershon £20bn pa savings

• Public sector procurement crucial for some sectors (defence; pharmaceuticals; construction; health and care services; transport infrastructure; IT; consulting)

• Link to global and EU markets and rules

The legacy problem

(1999 Gershon Review)• Fragmentation of procurement: circa 200

councils; numerous government agencies and quangos

• No common framework; lack of consistency; lack of common records

• No common process for large, complex, projects (IT disasters)

• Lack of procurement skills and training• Procurement staff bi-passed• Poor value for money, especially professional

services (management consultants; financial; legal)

Better procurement What is happening?

• Leading role for OGC and PSA of NHS (and now GPS)• Demand aggregation

• Better processes

• E-government

• Procurement IT• Collaborative bulk contracts• From spot purchase to large supplies

- Government buying agency - Regional consortia- Collaboration across departments

- Framework contracts- Gateway for big projects- Procurement card for small purchases

- 63 e-auctions: 20% saving on £1bn- e-tenders (£2bn)

- Prince 2; ITIL

- British Telecom

- IS-TC in the NHS

Procurement: The conflicts

Centralisation/aggregation .v. Localisation/decentralisation

Value for money .v. Other objectives (protectionism, as in defence; sustainability; social inclusion, as in

London)

Business confidentiality .v. Accountability and transparency (Gateways)

Fair and open competition .v. Speedy, simple, processes (Dr. Foster .v. DoH)

Access to small business & voluntary sector .v. Economies of scale

Short term savings .v. Long term relationships

Efficiency- honest and transparent?

• Reported Efficiency Savings £13.3bn

• NAO • £3.5 billion fair (25%)• £6.7 billion uncertain (50%)• £3.1 billion unclear (25%)

• Cost of achieving efficiency savings £bn?

• NOTE: The Gershon Review set Departments’ targets on the basis that efficiency savings could be reported gross of costs

SUSTAINABILITY AWARD

Sponsored by:

SUSTAINABILITY AWARDThe finalists are:

Authorities Buying Consortium

Department for Work and Pensions Sustainable Development Team

London Fire and Emergency Planning Authority

North Lincolnshire Council Highways and Planning

Scottish Natural Heritage

SUSTAINABILITY AWARD

Highly Commended

SUSTAINABILITY AWARD

Highly Commended

AUTHORITIES BUYING CONSORTIUM

SUSTAINABILITY AWARD

Sponsored by:

SUSTAINABILITY AWARD

Highly Commended

SUSTAINABILITY AWARD

Highly Commended

DEPARTMENT FOR WORK AND PENSIONS SUSTAINABLE DEVELOPMENT TEAM

SUSTAINABILITY AWARD

Sponsored by:

SUSTAINABILITY AWARD

The winner is…

SUSTAINABILITY AWARD

The winner is…

NORTH LINCOLNSHIRE COUNCIL HIGHWAYS AND PLANNING

e-GOVERNMENT AWARD

Sponsored by:

e-GOVERNMENT AWARD

Simon Lill Public Sector Sales Director

e-GOVERNMENT AWARDThe finalists are:

Caerphilly County Borough Council

City of Edinburgh Council

eProcurement Scotl@nd Service

Home Office

London Borough of Camden

e-GOVERNMENT AWARD

The winner is…

e-GOVERNMENT AWARD

The winner is…

ePROCUREMENTSCOTL@ND Service

BEST SERVICE AWARD

Sponsored by:

BEST SERVICE AWARD

Julie WhiteHead of Public Sector Marketing

BEST SERVICE AWARDThe finalists are:

Black Country Housing / Dudley Metropolitan Borough Council

BSS / Big Lottery Fund

Lion Apparel Systems / London Fire and Emergency Planning Authority

PageOne Ltd / British Army

Reliance / Thames Valley Police

BEST SERVICE AWARD

Highly Commended

BEST SERVICE AWARD

Highly Commended

BSS / BIG LOTTERY FUND

BEST SERVICE AWARD

Sponsored by:

BEST SERVICE AWARD

The winner is…

BEST SERVICE AWARD

The winner is…

PAGEONE LTD / BRITISH ARMY

BEST SMALL SUPPLIER INNOVATION AWARD

Sponsored by:

Rob LittleSenior Responsible Officer

BEST SMALL SUPPLIER INNOVATION AWARD

The finalists are:

Amble Electrical Distributors / Luton Borough Council

Blue Fountain Systems / Stockport Metropolitan Borough Council

Bow House Ltd / Authorities Buying Consortium

CorVu / Isle of Wight Council

PSL Consulting / London Borough of Merton

BEST SMALL SUPPLIER INNOVATION AWARD

Highly Commended

BEST SMALL SUPPLIER INNOVATION AWARD

Highly Commended

BOW HOUSE LTD /AUTHORITIES BUYING CONSORTIUM

BEST SMALL SUPPLIER INNOVATION AWARD

BEST SMALL SUPPLIER INNOVATION AWARD

Sponsored by:

The winner is…

BEST SMALL SUPPLIER INNOVATION AWARD

The winner is…

BLUE FOUNTAIN SYSTEMS / STOCKPORT MBC

BEST SMALL SUPPLIER INNOVATION AWARD

YOUNG PROCUREMENT PROFESSIONAL AWARD

YOUNG PROCUREMENT PROFESSIONAL AWARD

The finalists are:

Robert Anstee, Ministry of Defence

James Brooks, Sheffield College

Sharon Griffin, Authorities Buying Consortium

Joanne Leah, Allerdale Borough Council

Natalie Ledger, Sheffield College

Highly Commended

YOUNG PROCUREMENT PROFESSIONAL AWARD

Highly Commended

ROBERT ANSTEEMINISTRY OF DEFENCE

YOUNG PROCUREMENT PROFESSIONAL AWARD

YOUNG PROCUREMENT PROFESSIONAL AWARD

The winner is…

YOUNG PROCUREMENT PROFESSIONAL AWARD

The winner is…

JOANNE LEAHALLERDALE BOROUGH COUNCIL

YOUNG PROCUREMENT PROFESSIONAL AWARD

INDIVIDUALEXCELLENCE

AWARD

The finalists are:

Robert Anstee, Ministry of Defence

Ian Hardcastle, East Ayrshire Council

Jean Henderson, Authorities Buying Consortium

Roger Simpson Jones, London Borough of Ealing

Melanie Walsh, South West Fire & Rescue Services

INDIVIDUAL EXCELLENCE AWARD

The winner is…

INDIVIDUAL EXCELLENCE AWARD

The winner is…

MELANIE WALSHSOUTH WEST FIRE & RESCUE SERVICES

INDIVIDUAL EXCELLENCE AWARD

TEAMEXCELLENCE

AWARD

The finalists are:

Authorities Buying Consortium

Bedfordshire County Council Children’s Commissioning Service

Department for Environment, Food and Rural Affairs

Department for Work and Pensions Office Services Project Team

Essex Procurement Hub

TEAM EXCELLENCE AWARD

The finalists are:

London Borough of Havering

Manchester City Council Corporate Technical Services Group

South West Fire and Rescue Services

Southwark Council

Welsh Health Supplies

TEAM EXCELLENCE AWARD

Highly Commended

TEAM EXCELLENCE AWARD

Highly Commended

MANCHESTER CITY COUNCILCORPORATE TECHNICAL SERVICES GROUP

TEAM EXCELLENCE AWARD

TEAMEXCELLENCE

AWARD

Highly Commended

TEAM EXCELLENCE AWARD

Highly Commended

DEPARTMENT OF WORK AND PENSIONS OFFICE SERVICES PROJECT TEAM

TEAM EXCELLENCE AWARD

TEAMEXCELLENCE

AWARD

The winner is…

TEAM EXCELLENCE AWARD

The winner is…

BEDFORDSHIRE COUNTY COUNCIL CHILDREN’S COMMISSIONING SERVICE

TEAM EXCELLENCE AWARD

LIFETIMEACHIEVEMENT

AWARD

LIFETIMEACHIEVEMENT

AWARD

The recipient is…

LIFETIME ACHIEVEMENT AWARD

The recipient is…

DAVE WHELLER

LIFETIME ACHIEVEMENT AWARD

THANK YOU FOR YOUR SUPPORT

See you at:

National Public Procurement Practitioners Day 2008

Further details announced soon at:

www.n3pd.com